Russel Metals (RUS) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 4.11%
• Average Volume (3M): 153.55K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.94
• Revenue Growth: 5.82%
• EPS Growth: -15.76%
• Country: CA
• Employees: 3,970
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Distribution
• EPS (TTM): 1.07
• Shares Outstanding: 56,000,000
• 10 Day Avg. Volume: 149,583
• 30 Day Avg. Volume: 153,549
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 8.39
• 1Y Price Target: $51.26
• Price Target Upside: 24.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: C$46.00 ▲(11.30% Upside)

Russel Metals shows a solid overall performance, driven by strong earnings growth and attractive valuation. The company's financial stability and shareholder returns are positive, but challenges in cash flow growth and potential margin pressures are notable risks. Technical indicators suggest a neutral market sentiment.

Russel Metals Business Overview & Revenue Model

Company Description

Russel Metals Inc. operates as a metal distribution company in North America. The company operates through three segments: Metals Service Centers, Energy Products, and Steel Distributors. The Metal Service Centers segment sells plates, flat rolled carbon, stainless steel, aluminum, and other non-ferrous specialty metal products, as well as general line steel products, such as plates, structural shapes, bars, sheets, pipes, tubing, and hollow structural steel tubing. It also offers services, including fiber tube and flat laser processing; multi-dimensional press braking and rolling; shearing, slitting, and cutting to length; laser, oxy-fuel, and plasma cutting; stretcher and traditional leveling; beam drilling, notching, coping, and tee-splitting; saw cutting; edge trimming; and cambering. This segment serves customers in industries, such as machinery and equipment manufacturing, construction, ship building, and natural resources. The Energy Products segment distributes flanges, valves, fittings, and tubular goods primarily to energy industry. The Steel Distributors segment operates as a steel distributor for steel service centers and large equipment manufactures. Russel Metals Inc. was incorporated in 1929 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Russel Metals generates revenue primarily through the sale of metal products and related services. The company operates a network of service centers that stock a variety of metal products, enabling it to fulfill customer orders efficiently. Key revenue streams include the sale of carbon steel, stainless steel, and aluminum products, along with processing services such as cutting, shearing, and fabrication. Additionally, Russel Metals benefits from long-term contracts and relationships with major customers in the energy and industrial sectors, providing a stable revenue base. The company's strategic acquisitions and partnerships with suppliers also enhance its market position and contribute to its earnings.

Russel Metals Financial Statement Overview

Summary

Russel Metals presents a stable financial position with moderate profitability and efficient cash generation. While the company shows slight revenue growth and a decrease in free cash flow, its strong balance sheet and profitability metrics indicate a solid financial foundation. The leverage is well-managed, and the company is capable of converting income into cash effectively, positioning it well for future growth opportunities.

Income Statement

The company's gross profit margin for TTM is approximately 15.81%, and the net profit margin is around 3.53%. Both margins are indicative of moderate profitability. The revenue growth rate over the past year is 2.64%, showing a slight increase, but still lower than the growth seen in previous years. EBIT and EBITDA margins are at 4.96% and 7.07%, respectively, reflecting stable operating efficiency. Overall, the income statement exhibits decent profitability with room for improvement in revenue growth.

Balance Sheet

Russel Metals maintains a healthy balance sheet with a debt-to-equity ratio of 0.29, indicating a conservative leverage position. The return on equity (ROE) for TTM stands at approximately 9.35%, reflecting satisfactory profitability from equity. The equity ratio is about 60.89%, highlighting a solid equity base. The balance sheet reflects strong financial health with manageable debt levels.

Cash Flow

The TTM free cash flow growth rate is negative at -9.41%, indicating a decrease in free cash flow compared to the previous year. However, the operating cash flow to net income ratio is quite robust at 2.11, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 1.49, showing good cash flow conversion. Overall, the cash flow statement demonstrates solid cash generation capabilities, albeit with recent declines in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.26B	4.51B	5.07B	4.21B	2.69B
Gross Profit	845.40M	889.90M	956.50M	1.13B	1.21B	518.70M
EBITDA	328.00M	315.50M	428.20M	580.40M	657.90M	125.20M
Net Income	164.80M	161.00M	266.70M	371.90M	432.20M	24.50M
Balance Sheet
Total Assets	2.63B	2.35B	2.57B	2.51B	2.31B	1.60B
Cash, Cash Equivalents and Short-Term Investments	194.50M	45.60M	629.20M	363.00M	133.10M	26.30M
Total Debt	474.60M	196.80M	422.50M	422.90M	404.30M	399.40M
Total Liabilities	1.02B	688.30M	930.20M	947.60M	1.07B	731.60M
Stockholders Equity	1.61B	1.66B	1.64B	1.56B	1.25B	864.70M
Cash Flow
Free Cash Flow	216.90M	253.70M	389.00M	318.40M	275.70M	346.10M
Operating Cash Flow	304.10M	343.90M	461.70M	359.90M	304.50M	371.00M
Investing Cash Flow	-414.30M	-417.70M	-5.30M	-6.50M	-107.20M	-27.30M
Financing Cash Flow	-82.50M	-537.90M	-184.90M	-139.10M	-93.50M	-327.10M

Russel Metals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RUS, the sentiment is Negative. The current price of 41.33 is above the 20-day moving average (MA) of 41.33, below the 50-day MA of 42.51, and above the 200-day MA of 40.96, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RUS.

Russel Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIH	76 Outperform	C$11.94B	24.69	16.70%	1.39%	6.99%	-5.58%
MTL	74 Outperform	C$1.21B	12.07	9.99%	6.07%	5.52%	-18.01%
RUS	73 Outperform	$2.31B	14.31	9.90%	4.11%	5.82%	-15.76%
WJX	73 Outperform	C$514.21M	14.37	6.93%	5.89%	2.19%	-48.80%
FTT	71 Outperform	C$7.61B	16.28	18.07%	2.00%	2.36%	0.62%
ARE	66 Neutral	C$1.49B	58.90	2.78%	3.21%	20.53%	74.96%
Sector *	65 Neutral	$2.71B	15.02	12.10%	3.43%	2.94%	43.39%

Russel Metals Corporate Events

Russel Metals Reports Strong Q2 2025 Results with Revenue Growth and Operational Improvements

Russel Metals Inc. reported strong financial results for the second quarter of 2025, with revenues reaching $1.2 billion, marking a 3% increase from the previous quarter. The company achieved its highest revenue level since mid-2022, driven by favorable market conditions, higher metal prices, and improved margins. The EBITDA rose by 26% to $108 million, and earnings per share increased by 43% to $1.07. The company also completed key operational improvements, including the integration of former Samuel branches into its ERP system, and enhanced its financial flexibility by extending its bank debt facility.

The most recent analyst rating on (TSE:RUS) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Russel Metals stock, see the TSE:RUS Stock Forecast page.